Customs duties on pharmaceutical products: a complex puzzle

Customs duties could be used as a lever to solve the persistent problem. Furthermore, of disparities in drug prices. However,

The EU and the United States concluded a trade agreement on Sunday, July 27, 2025. However, a certain confusion persists in terms of customs duties applied to the pharmaceutical sector. Nevertheless, An underway survey under section 232. Consequently, which relates to the implications for national security of a certain number of sensitive sectors, including the pharmaceutical supply chain, is expected to end in the coming weeks. Nevertheless, It could have an impact on the level of customs prices applied to pharmaceutical companies. Therefore,

What are the objectives of the Trump administration? Nevertheless, We see three main ones.

Above all. she wishes to relocate pharmaceutical production, create domestic jobs and reduce the dependence of the United States with regard to foreign customs duties pharmaceutical products: complex supply chains, all in the context of a wider effort in favor of economic security and health care.

Second, there is the tax aspect. Many pharmaceutical companies manufacture drugs in countries like Ireland, where they benefit from an advantageous tax framework. The repatriation of production would allow the United States to increase the revenue from corporate tax.

Finally, customs duties could be used as a lever to solve the persistent problem of disparities in drug prices. American consumers often pay much more than patients in other developed countries. and the administration could use customs duties to put pressure on businesses so that they reduce this difference. Even if pricing policy and manufacturing are distinct questions, they remain politically linked.

Impact on industry

In the short term, the impact on pharmaceutical companies is limited. Many of them have increased their stocks preventively in the United States in order to protect customs duties pharmaceutical products: complex themselves against short-term disturbances. In the medium term. industry has already reacted by announcing more than $ 200 billion in investments to increase production capacity in the United States.

The Trump administration has publicly congratulated several companies for these efforts. signaling a desire to leave time for their implementation before applying new customs duties. It goes without saying that the establishment of a production chain cannot be done overnight.

From a commercial point of view, customs duties on pharmaceutical products may not be as disturbing as in other sectors. Thanks to their high raw margins, pharmaceutical companies can absorb modest costs of their costs. However, complexity lies in transfer prices. Many companies attribute a high internal value to drugs produced abroad, especially due to the intellectual property attached to them.

This practice has the effect of moving the benefits – and therefore taxes – to jurisdictions where taxes are customs duties pharmaceutical products: complex lower. If customs duties are applied, this accounting approach will probably be examined closely.

It is interesting to note that pharmaceutical companies based in the United States can be more exposed than their. non-American counterparts. Many of them have relocated their production and intellectual property to benefit from tax arbitration. On the other hand. foreign companies often have significant production capacities in the United States and are less encouraged to practice aggressive transfer prices.

Conclusion

Customs duties on pharmaceutical products remain difficult to identify, given the current survey under section 232. In the current state of things. the impact of customs duties may be absorbed, but we expect more details on the exact implementation of these rates. The overall orientation is clear: increased control of the United States on the pharmaceutical supply chain. an increase in tax revenue and the possibility of using additional customs duties via section 232 customs duties pharmaceutical products: complex as a lever in discussions on the price of medicines.